Eagle Times closes

Smaller newspapers faring better than larger ones; Eagle-Times closes; Tribune Co. in further trouble

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July 17, 2009

Greetings!

With so many developments going on this year, economic, political and technological, you can't afford to miss out on the next AFCP Publishers Retreat August 13-14, 2009 in Charlotte, North Carolina.

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Smaller Newspaper faring better than Larger ones

While they are still better off than their big-city counterparts on average, smaller newspapers are also feeling the effects of the economic downturn and Internet competition, according to a long-term study from the Inland Press Association. The study's findings temper the optimistic view evinced by many publishers in smaller markets, who take pains to distinguish their properties from the big metro dailies.

Over five years ending in 2008, newspaper profitability fell across the board regardless of size, the Inland study found. This included large drops at newspapers with circulations of 25,000-50,000 -- one of the segments that was supposed to be faring better than the big metro dailies. If this trend continues, bankruptcy and sale or closure could follow for scores of newspapers, as the plague afflicting big metro dailies infects smaller markets.

Their fate will largely be determined by indebtedness, which has proved the bane of big publishers, especially with the global credit crunch. Like any other small business, small newspapers without a lot of debt will be in a much better position to weather an extended downturn than those that borrowed extensively to replace printing presses, buy real estate, or acquire other newspapers.

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Eagle-Times of Claremont, NH closes

The 175-year-old Claremont, N.H. Eagle Times publishes its last issue today after filing for bankruptcy. Publisher Harvey Hill informed the 100-plus staffers only yesterday of the shutdown of the near-daily (the morning paper doesn't publish on Saturday) as well as three companion weekly and advertiser papers serving surrounding areas. Employees get their last paycheck next week and health insurance through the end of the month. The Eagle Times website (circ. about 8,000) has no news of the impending closure. New England Cable News does, however. It has the video clip below, including interviews with staffers choking back tears but otherwise showing little outrage. One man mourns the fact that the immediacy of the move gave the staff no chance to say goodbye to readers. The publisher filed for Chapter 7 bankruptcy, which mandates immediate closure of the business. (via Martin Langeveld)

From Newspaper Death Watch...
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Tribune Company howing a tough row

The bankrupt Tribune Co. may be under legal protection from debtors, but it isn't protected from the realities of the market. The company's revenue slid 23% in the first five months of the year and its profit margins have dwindled from 19% to 8% during that time, according to a Morningstar analysis. Tribune Co. doesn't have to report financial results while in bankruptcy, so Morningstar derved the financial picture from an analysis of "operating receipts" reported so far this year. While the company is still cash flow positive, the declining margins would indicate that its debts will have to be significantly restructured to enable it to emerge from bankruptcy. The good news is that the company appears to be close to selling the Chicago Cubs to a local family for a reported $900 million. The Cubs have been for sale for two years. Tribune bought the team and the stadium for $20.5 million in 1981, representing a capital gain of nearly 4,500% in 28 years.

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Houston Business Journal won't be missed

The Houston Business Journal conducted a non-scientific poll asking readers, "If your local daily newspaper stopped its print edition, would you miss it?" Fifty-six percent said they wouldn't, with many adding that biased coverage is their biggest complaint.